Category Archive: Tax

Australian Low Income Earners can Qualify for a Medicare Levy Reduction or Exemption

If your taxable income is equal to or less than; $21,655 you do not have to pay the Medicare levy.
If you are a senior or pensioner, then that threshold becomes $34,244.

If your taxable income is between $21,655 and $27,068 ($34,244 and $42,805 for seniors and pensioners) then you may be entitled to a Medicare Levy Reduction.
Your Medicare Levy will be calculated at 10% of the difference between your taxable Income and the lower limit (eg: $21,655 or $34,244)

A resident taxpayer in Australia who earns $18,200 or under, in the 2016 – 2017 year, will pay NO tax on that income.
If the annual income is $37,000 then the tax payable is $3,572. This is 9.65% of Taxable Income.
At an income of $87,000 the tax will be $19,822. This is 22.78% of Taxable Income.
For a higher earner at $180,000 the tax will be $54,232. This is 30.13% of Taxable Income.

LITO: Low Income Tax Offset for Low Paid in Australia Australian taxpayers are able to benefit from the Low Income Tax Offset [LITO] benefit from the Australian Tax Office (ATO). This Low Income Tax Offset rebate is given to those people with low taxable incomes, and gradually reduces down to zero at a certain threshold. …

Income Tax and Capital Gains Tax on Airbnb Income
The Australian Tax Office [ATO] has made it clear that people who rent rooms out in their properties need to declare all rental income in their tax return.
It has also been pointed out that people who rent out rooms etc, such as using the Airbnb service, may also be liable for Capital Gains Tax from sale proceeds of rented properties.

A resident taxpayer in Australia who earns $18,200 or under, in the 2016 – 2017 year, will pay NO tax on that income.
If the annual income is $37,000 then the tax payable is $3,572. This is 9.65% of Taxable Income.
At an income of $87,000 the tax will be $19,822. This is 22.78% of Taxable Income.
For a higher earner at $180,000 the tax will be $54,232. This is 30.13% of Taxable Income.

Australian Tax: Data Matching for Insurance Policies The ATO is requesting details of Insurance Policies for the 2013-14 and 2014-15 years, from most Insurance companies. This data will be used to compare against tax returns to evaluate which of those 2013-14 and 2014-15 tax returns to investigate.

The 14 and 28 Day rules for Employers relating to Tax File Numbers If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us. If …

Australian Taxation statistics for 2012 ??13 The Australian Tax Office [ATO] released the Taxation statistics report for 2012 ??13 on 29 April 2015. This report presents an overview of 2013 income tax returns for individuals, companies, superannuation funds, partnerships and trusts. One surprising result was the number of taxable individuals had dropped from 10,098,810 in …

Income Tax in Australia 2015 – 2016 A resident taxpayer in Australia who earns $18,200 or under, in the year, will pay NO tax on that income. If the annual income is $37,000 then the tax payable is $3,572. This is 9.65% of Taxable Income. At an income of $80,000 the tax will be $17,762. …